Klout Price Tag 'Doubles'

US-based social media solutions firm Lithium Technologies has acquired social media analytics firm Klout for a reported $200m - double the price first mooted in February.

Founded in 2008 by CEO Joe Fernandez and programmer Binh Tran, San Francisco-based Klout analyses the influence of individuals and the prevalence of topics around the web, using measurements of behavior, complex ranking algorithms and semantic analysis of content.

Lithium already offers social customer relationship management (SCRM) solutions and Lithium Insights analytics tools, and owns social media monitoring firms Social Dynamx, and Scout Labs. According to a statement, the combined companies will reach more than 500 million consumers across 10,000 specific interest areas, and 300+ branded communities.

While the firms did not disclose details of the transaction, according to two anonymous sources, Lithium has now paid $200m in an all-stock deal - doubling the $100m price tag reported back in February. At a press conference Lithium CEO Rob Tarkoff did not deny the amount, stating: 'If the reports on the value of Klout are true, that makes Lithium an extraordinarily valuable company and I'm happy about that.'

Fernandez (pictured) will join Lithium's executive team, reporting directly to Tarkoff, while continuing to run the Klout operation as its General Manager. Commenting on the acquisition, Fernandez said: 'Lithium shares our passion for empowering every person to measure and maximize their impact online. Together, we can provide a comprehensive measure of trust and expertise for both consumers and brands in our digital age.'

Web sites: www.lithium.com and www.klout.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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